The Nigerian Exchange Limited (NGX) has sanctioned four listed firms for inability to meet the regulatory requirements ranging between the third quarter of 2022 and the full year of 2022.
The companies include Ecobank Transnational Incorporated Plc, Notore Chemical Industries Plc, PZ Cussons Nigeria Plc, and John Holt Plc.
Further checks showed that PZ Cussons Nigeria Plc led with N4.8 million of the fines for failure to file the 2022 audited financial statement which represents 41% of the total fines while Ecobank Transnational Incorporated Plc and John Holt Plc followed with a fine of N3.2 million apiece for inability to file third quarter 2022 unaudited financial and 2022 audited financial statement respectively.
Notore Chemical Industries Plc was fined N500,0000 for failure to submit the 2022 audited financial statement.
Market operators agreed that the sanction for non-compliance with the rules of listing on NGX is a welcome development, as it will lead to more appropriate pricing of securities. More quoted entities would be compelled to give information to the market on time.
The Managing Director of Crane Securities Limited, Mr. Mike Eze, while reacting to the development, said the action of NGX would boost investor confidence in the market because it is sending a signal for investors to get companies’ financial reports as at when due.
He added that investors needed to make informed decisions before choosing which stock to buy and this can only be achieved if there is adherence to good corporate governance by the quoted companies.
According to the founder of the Independent Shareholders Association of Nigeria (ISAN), Sir. Sunny Nwosu, going by what the exchange said, those involved deserved to be sanctioned.
Also, the President of Progressive Shareholders Association, Mr. Boniface Okezie, said it was better for Nigerians to have a few companies that are ready to play by the rules than to have all the companies in the world that are not ready to satisfy post-listing requirements.
